Research On Default Risk Of Commercial Real Estate Asset Securitization

Commercial real estate mortgage-backed securities,or CMBS,is a type of asset securitization and an innovative financing method.It can revitalize stock assets,enrich corporate financing channels,and reduce corporate financing costs.Innovative products that match their needs under the e-commerce crackdown.However,due to its late development in China and lack of issuance experience,there are certain risks in its development.In this paper,by studying representative cases,the first default case of China's CMBS,the special plan for beneficiary asset support of the Red Expo Convention and Exhibition Trust,I hope to enrich the research of China's CMBS.Based on expected income theory,principal-agent theory,and trade-off theory,this paper analyzes the necessity of case companies to issue CMBS and the reasons for breach of contract,so as to expose the risks of China's CMBS development.In the case study of the necessity of the CMBS product issued by the case company,it is analyzed from three aspects: the company's operating status,financing channels,and strategic choices.In the disclosure of its default risk,it focuses on three aspects.First,it analyzes the default risk related to the underlying assets,and studies the rationality of its cash flow.It is found that the original cash flow forecast has irrationality,and it has not All the influencing factors are considered in detail,and the risks of fund mixing and misappropriation during the cash flow collection of the underlying assets are revealed.The second is to analyze the default risks related to the original equity holders,from the original equity holder 's debt repayment in the past five years.Financial risk analysis of capabilities,operating capabilities,and profitability,and then explore the causes of financial risks,and found that companies due to new and old business conflicts,debts and internal governance problems have led to financial crises,which in turn led to CMBS breach of contract;three is Analysis of default risks related to product design are credit enhancement risk and the due diligence risk of plan managers.This article analyzes the default risk of China's first CMBS default project and explores the reasons for its default.It is found that although CMBS has the advantages of reducing financing costs,enriching financing channels,revitalizing stock assets,etc.,it has advantages in basic asset cash flow forecasting and fund collection.There are certain risks in the risk isolation of originalequity holders and product design,which makes it possible for defaults to occur.Therefore,the development of China's CMBS needs to first pay attention to strictly control the quality of basic assets,reasonably predict its cash flow,set up a third-party professional service organization to prevent the mixing of funds;secondly,it should strengthen the operating capacity of the original equity holders;finally,the product design should be improved To establish an effective credit enhancement mechanism and strengthen supervision.